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MARRIOTT INTERNATIONAL HAS bought hotel rival Starwood for $12.2 billion (€11.4 billion), creating the world’s biggest hotel chain.
The merger will give the company more than 5,000 hotels and 1.1 million rooms worldwide in a deal that includes iconic brands like Sheraton, Westin and Ritz-Carlton.
Together the two hospitality giants turned over more than $2.7 billion (€2.5 billion) in revenue over the year to the end of September.
Marriott expects the deal, which has board approval but still needs to be cleared by shareholders, would save it at least $200 million (€187 million) per year. The transaction is expected to be finalised in mid-2016.
Marriott International CEO Arne Sorenson said: “The driving force behind this transaction is growth.
This is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace.”
The sector has in recent years been forced to respond to the threat of peer-to-peer accommodation providers like Airbnb, whose valuation has now surpassed that of any publicly listed hotel company.
In Ireland, hotels that come under the Marriott International umbrella include luxury accommodation like The Shelbourne and the Powerscourt Hotel, which was recently named the best hotel in the country.
Starwood’s portfolio includes the five-star Westin Dublin and four-star Sheraton Athlone.
- With AFP
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What amazes me, is that it’s still worth less than AirBnB who own zero hotels or anything really
Signs of a definite IT bubble. Lots of IT companys supposedly having multi billion dollar valuations now despite having little assets.
Was wondering why the Sherbourne pic looked like a drawing. .then I slowly realised!!
lol snap. It’s brilliant though.
Pretty sure that Starwood don’t “own” either the Westin Dublin (operated under a management contract) or Sheraton Athlone (franchise).
They don’t… Someone bought the physical property about a year ago. Not sure of the arrangement and if they are leasing it or operating it with Starwood/Westin.
I remember being in it around the time it was sold and because of the change of ownership they were moving payment services and couldn’t take my Starwood American Express.
the Westin building is still up for sale on daft I believe (10.5 million if you want it)
Was bought by John Malone and Lalco http://www.irishtimes.com/business/transport-and-tourism/us-billionaire-buys-westin-hotel-in-dublin-for-65m-1.1872627
Also, delighted that Peter Bodkin (great name) corrected his article, thereby making me look like a lunatic.
Maybe some of their lower value brands like Courtyard or Fairfield Inns are impacted, but I’m not sure people looking to stay at a Sheraton, Westin or Ritz-Carlton are likely to turn around and go the AirBnB route.
There had been another Starwood hotel in Ireland called the Sheraton Fota Island Golf Resort & Spa at Fota Island in Co. Cork however; this now no longer a Sheraton/Starwood branded property and is currently known as the Fota Island Resort. This will be worrying news for existing employees in the city of Cork as both Starwood Hotels & Resorts Worldwide inc and Marriott International are both major employers with their respective Customer Contact Centres in addition to the Marriott Vacation Club International offices all based out of Cork. After mid 2016, I suspect this merger if given full approval by all concerned will end up with more efficient ways of doing business for the enlarged hotel group which will probably result in some job losses. Marriott has had facilities based in Blackpool and Cork Airport Business Park while Starwood has been based at the former Thompson’s Bakery building on MacCurtain Street (opposite The Metropole Hotel) in recent years.
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